The tech sector is having a big 2024. Nvidia just crushed earnings expectations. The AI boom remains in full swing. The tech-heavy Nasdaq index is up more than 8 percent year-to-date.
The U.S. economy is also doing surprisingly well, adding 353,000 jobs in January, well ahead of economists’ forecasts. Hotter-than-expected inflation data may also keep the Fed from cutting rates as soon as the market expects, a sign that the economy remains strong enough to support higher interest rates for longer. It’s a different story for tech workers, though.
“The layoffs to the start of 2024 signal a dramatic shift in the tech industry,” said Jeff Shulman, professor at the University of Washington’s Foster School of Business. “We’re going to continue to see layoffs happen as the future of work has changed, as the future of technology has changed, and as investors appetite for risk and growth versus profitability has dramatically changed as well.”
The number of tech sector layoffs in 2024 has been outpacing the number of terminations in 2023. So far, about 42,324 tech employees were let go in 2024, according to Layoffs.fyi, which tracks layoffs in the tech industry. That averages out to more than 780 layoffs each day in 2024. In 2023, nearly 263,000 tech employees got laid off, averaging about 720 firings each day that year.
There are several factors behind the churn. Artificial intelligence is at the forefront. Companies need to free up cash to invest in the chips and servers that power the AI models behind these new technologies. There’s also the stock market effect. Companies that conducted layoffs haven’t been punished for it, either by investors or on their bottom lines.
Watch the video above to find out more about why tech workers may be poised to endure another rough year of layoffs, and why the surprising strength of the U.S. economy may not be coming to their rescue.
Chapters:
0:00 — Intro
2:26 — Hiring and firing
4:24 — The AI effect
7:15 — The end of cushy tech jobs?
9:50 — What’s next?
Produced by Anuz Thapa
Edited by Michael Hoyt
Narration by Jordan Smith
Graphics by Jason Reginato and Christina Locopo
Supervising Producer Jeff Morganteen
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Why Widespread Tech Layoffs Keep Happening Despite A Strong U.S. Economy
I said this before. It sounds crazy but if you make it mandatory for an employer to pay someone’s salary for 6 months if they laid them off. I can guarantee that these layoffs will happen less.
DONALD TRUMP
Do they usually get "Severence Packages" I hope ??!
Greed.
It’s gonna be a lot more people homeless in this country
Thought Bubble.
Das Kapital.
Musk had nothing to do with this and is objectively an idiot, and probably a fascist loser. The layoffs are because the companies over hired in the pandemic and this is just natural market correction. Also, innovation is not really happening. The AI stuff is all marketing hype and is the next bitcoin lie. Tech is already in a bubble. Apple is massively overvalued. When nearing the bursting point the companies in the bubble start to self cannibalize. They are looking for cheap outs to make the balance sheet look nice. Trimming the fat is an easy short term gain.
Better learn to code…oh wait 😂
Most of the layoffs are unproductive females.
They are cooking the books.
"Despite A Strong U.S. Economy" 🤔
Surf Wisely.
Thanks to GOD that I am in my early sixties. Thus I am on verge of retirement. I could not had survived if I was not from BABY BOOMERS generation.
While you are practicing your pronouns, AI will replace you. Stay on your toes and focus on what matters.
There are layoffs because its a garbage economy not strong. Welcome to Bidenomics that the Dems are proud of.
A strong economy has no layoffs and has tons of hiring, like when Trump was in office.
DUH … BECAUSE HALF THE POPULATION IS ON THE RIGHT BUT ALL THE TECH COMPANIES ARE LEFTIST CESSPOOLS
When Biden became President, all the companies thought things were going to be great…so they started hiring like crazy…now they see what a FAILURE he has been as President, with rising INFLATION making everything so much more expensive and his constant war against American companies trying to steal as much money from them in TAXES as he can…they are now forced to lay off employees to survive his Presidency…the reality is, If Joe Biden is President for another term, most of these companies will go out of business and the American Economy will collapse.
"…individuals are going to have to cut back spending…"
When you're on unemployment for a year, then your unemployment finally runs out, and you've gone several months on nothing but what you were lucky to have saved for emergencies, there's no way to simply "cut back spending".
At that point, you join the ever-increasing masses of the homeless.
But hey, glad to hear our old tech jobs were so "cushy".
What people aren’t talking enough about is how tech companies realized they can lay off what they consider “the fat” of their employees in one or two big swings a year and hire cheaper talent. It’s why Cloudflare laid off those people and two months later began hiring many of those same roles again it’s happening at every tech company. Now I understand why you have to get rid of weak employees the issue is this removes the responsibility in these tech companies from hiring the “right” people (often they give you 3-6 30 minute calls, hire you, give you two weeks of “enablement” and kick you off to a manager who may or may not be good) which is the other area of responsibility not addressed they have many middle managers that ultimately serve little purpose who can easily point fingers to save themselves. Regulation needs to be made where fortune 100 companies have some sort of federal freeze from rehiring positions after a layoff. I guarantee companies will spend more in making do with what they have and rely on the right way of firing people for being the “fat”… which now creates responsibility on everyone’s count
It's not AI, it's just companies colluding against workers. AI can't do any of these jobs and won't even come close to doing them in the coming decade.
Starts with a sales person in tech who got laid off for underperforming in her sales
People ultimately pay for AI so it's not about how good something is… the question is people have to see the long term implications of AI.
"strong us economy" 🤣🤣
Co piolet feature cant replace drive same AI cant replace developer AI can be used in some absolute domain but software industry cannot be 100% dependent on it
I don't work in tech but I generally think it's a bad idea to lay off people for dubious reasons as your company reaps record profits and sees its stock price rise. These companies are teaching their workforce just how fickle they can be and discouraging anyone from doing more than the bare minimum. The workers left behind will be distrustful and disloyal.
US strong economy is on paper. not a reality.
This is the third video that I've seen on economic growth and they all start with the phrase during the pandemic during the pandemic during the pandemic during the pandemic stop blaming the damn pandemic for it! That happened three years ago 4 years ago however long it was ago the reason why you're laying off people is because you're cheap and you don't want to pay anybody! Cut the BS
"oh we care about you….."
But we're going g to fire you anyway…. Good luck "
Mommy told you you are special. My cat is special. You are not. At my company the people that love to call in on Fridays are gone. We all know who you are.
Read the titles, msnbc frames their videos with.."why the blah blah blah is happening…yep, they have all the answers. 😆 they are the problem.
Never enter a field where u can be replaced.
Its the Renaissance all over again